This update provides important Social Security information for 2012. By law, some numbers change automatically each year to keep the program up to date with price and wage levels. For 2012, the law extended the 2 percent reduction in the employee’s share of the Social Security payroll tax. Employers still contribute the same tax rate as before.
Information for people who are working
| Social Security and Medicare Taxes | ||
|---|---|---|
| Social Security taxes | 2011 | 2012 |
| Employee | 4.2% on earnings up to $106,800 | 4.2% on earnings up to $110,100 |
| Employer | 6.2% on earnings up to $106,800 | 6.2% on earnings up to $110,100 |
| Self-employed *Can be offset by income tax provisions |
10.4%* on earnings up to $106,800 | 10.4%* on earnings up to $110,100 |
| Medicare taxes | 2011 | 2012 |
| Employee/employer (each) | 1.45% on all earnings | 1.45% on all earnings |
| Self-employed *Can be offset by income tax provisions |
2.9%* on all earnings | 2.9%* on all earnings |
| Work credits—When you work, you earn credits toward Social Security benefits. You need a certain number of credits to be eligible for Social Security benefits. The number you need depends on your age and the type of benefit for which you are applying. You can earn a maximum of four credits each year. Most people need 40 credits to qualify for retirement benefits. | ||
| 2011 | 2012 | |
| $1,120 earns one credit | $1,130 earns one credit | |
Information for people who receive Social Security benefits
| Earning limits | ||
|---|---|---|
| Under federal law, people who are receiving Social Security benefits who have not reached full retirement age are entitled to receive all of their benefits as long as their earnings are under the limits indicated below. For people born in 1943 through 1954, the full retirement age is 66. The full retirement age will increase gradually each year until it reaches age 67 for people born in 1960 or later. | ||
| 2011 | 2012 | |
| At full retirement age or older | No limit on earnings | No limit on earnings |
| Under full retirement age | $14,160 For every $2 over the limit, $1 is withheld from benefits. |
$14, 640 For every $2 over the limit, $1 is withheld from benefits. |
| In the year you reach full retirement age | $37,680 For every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age. |
$38,880 For every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age. |
Disability beneficiaries’ earnings limits: If you work while receiving disability benefits, you must tell us about your earnings no matter how little you earn. You may have unlimited earnings during a trial work period of up to nine months (not necessarily in a row) and still receive full benefits. Once you have completed your nine-month trial work period, we will determine if you are still entitled to disability benefits. You also may be eligible for other work incentives to help you make the transition back to work. |
||
| Substantial Gainful Activity (non-blind) | $1,000 per month | $1,010 per month |
| Substantial Gainful Activity (blind) | $1,640 per month | $1,690 per month |
| Trial work period month | $720 per month | $720 per month |
Information for people who receive Supplemental Security Income (SSI)
| Monthly federal SSI payment (maximum) | ||
|---|---|---|
| 2011 | 2012 | |
| Individual | $674 | $698 |
| Couple | $1,011 | $1,048 |
| Monthly income limits | ||
| Individual whose income is only from wages | $1,433 | $1,481 |
| Individual whose income is not from wages | $694 | $718 |
| Couple whose income is only from wages | $2,107 | $2,181 |
| Couple whose income is not only from wages | $1,031 | $1,068 |
| NOTE: If you have income, your monthly benefit generally will be lower than the maximum federal SSI payment. remember, you must report all of your income to use. Some states add money to the federal SSI payment. If you live in one of these states, you may qualify for higher payment. Your income can be greater than the limits indicated and you still may qualify. | ||
Information for people on Medicare
| Most Medicare costs are increasing this year to keep up with the rise in health care costs. | ||
|---|---|---|
| 2011 | 2012 | |
| Hospital Insurance (Part A) | ||
| For first 60 days in a hospital, patient pays | $1,132 | $1,156 |
| For 61st through 90th days in a hospital, patient pays | $283 per day | $289 per day |
| Beyond 90 days in a hospital, patient pays (for up to 60 or more days) | $566 per day | $578 per day |
| For first 20 days in a skilled nursing facility, patient pays | $0 | $0 |
| For 21st through100th days in a skilled nursing facility, patient pays | $141.50 per day | $144.50 per day |
| Part A Premium Buy-In: The amount of the premium you pay to buy Medicare Part A depends on the number of Social Security credits you have earned. If you have: | ||
| 40 credits | $0 | $0 |
| 30-39 credits | $248 per month | $248 per month |
| less than 30 credits | $450 per month | $451 per month |
| Medical Insurance (Part B) | ||
| Premium | $115.40 | $99.90 per month** |
| Deductible | $162 per year | $140 per year |
| After the patient has paid the deductible, Part B pays for 80 percent of covered services. | ||
| NOTE: If you get Medicare and your income is low, your state may pay your Medicare premiums and, in some cases, your deductibles and other out-of-pocket medical expense. Contact your local medical assistance (Medicaid) agency, social services or welfare office for more information. | ||
| **Standard monthly premium is $99.90. Some people with higher incomes pay higher premiums. | ||
